Wednesday, June 22, 2011

Transportation problem

Transportation problem is also the problem of resource allocation, like linear programming. This is the application of distribution of physical goods and services from several origin or sources to several destination or consumption point. Transportation problem can also be solved by using LP model but due to large number of variables and constraints it consumes very long time to solve it. For this cause, transportation algorithm is developed. It is also known as stepping stone method and modified distribution method.

Transportation problem involves large number of shipping routes from several supply origins to several demand destinations. The main objective of TP is to determine the number of units to be supplied to destinations in order to satisfy the available quantity and required quantity of goods to optimize the objective of minimization of cost or maximization of profit.

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